California AB 331 (Automated Decision Systems)
California Assembly Bill 331 would require deployers of automated decision systems used in significant decisions, including employment, to conduct impact assessments, provide notices, and allow individuals to opt out.
Penalties for Non-Compliance
- Civil penalties under the California Consumer Privacy Act framework
- Private right of action for individuals affected by biased AI decisions
- Attorney General enforcement with penalties up to $7,500 per intentional violation
- Injunctive relief requiring system shutdown until compliance
- No statutory cap on compensatory damages
Key Requirements
Conduct impact assessments before deploying automated decision systems
Provide clear notice to individuals subject to automated decisions
Offer meaningful opt-out mechanisms
Document the purpose, intended benefits, and known limitations of AI systems
Maintain records of impact assessments for at least three years
Update impact assessments annually or after significant system changes
Report significant bias findings to the California Civil Rights Department
Step-by-Step Compliance Checklist
Inventory all automated decision systems used in employment
Conduct initial impact assessments for each system
Implement candidate notification and consent mechanisms
Establish opt-out processes for candidates who request human review
Create documentation and record-keeping procedures
Set up monitoring for ongoing bias detection
Train HR staff on compliance requirements
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Related Regulations
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